Saturday 09 July 2022
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Data released on Friday by the National Association of Realtors says that due to record house prices and higher mortgage rates in May, it made it the most expensive month since 2006 to buy a home. Interest rates have continued to climb since May.
The National Association of Realtors’ housing affordability index fell to 102.5 in May – the lowest level since the index fell to 100.5 in July 2006.
The new data was near the lowest level since July 1990, when the index hit 100.2. It was a time when interest rates were in the double digits.
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In Rhode Island, the median price of a single-family home is at an all-time high – $420,000.
Nationally, buying a home was relatively affordable in 2020 and last year, thanks to record mortgage rates, even as strong demand sent home prices soaring. But this year, mortgage rates have risen sharply and house prices have reached new highs nationwide.
“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage on a typical home at national and regional levels based on the most recent price and income data. “say the real estate agents.
RI a good deal?
As GoLocal reported earlier this week, Massachusetts home prices are so high that Commonwealth residents will continue to look to RI for bargains.
According to the Massachusetts Association of Realtors (MAR), housing prices in the Commonwealth continue to climb and make Rhode Island prices appear reduced.
The median price for a single-family home in Rhode Island is $419,000, but that’s a nice discount for Filene’s basement compared to prices in Massachusetts.
In Massachusetts, the median single-family home price increased 12.3% to $617,750 and the median condominium price increased 5.1% to $531,501, compared to the same period last year .
The median price in Massachusetts is 47% higher than in Rhode Island.
“The biggest problem we face in this market is the shortage of homes,” said Dawn Ruffini, 2022 president of MAR. “Until we are able to increase supply, more households will continue to be excluded from the market. We must act now to expand access to housing, as this will reduce house prices and allow more people to enter the market.